informationliberation
The news you're not supposed to know...




An Introduction to Austrian Economics: Understand Economics, Understand Everything
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
(more)
Article posted Feb 05 2013, 4:13 AM Category: Economy Source: The Circle Bastiat Print

Krugman turns to his babysitter again

By Mark Thornton

In today’s column on “Money, Wealth, and Models,” Paul Krugman lashes out “the Austrianish horde” for being critical of his view “that you can create real wealth by printing more pieces of paper." He is addressing Hans Hoppe’s critique of Krugman that as a society you cannot turn pieces of paper into wealth, but not by name. Krugman defends himself by resorting once again to the model of a babysitter coop that failed. According to Krugman:
“all you need to do is think in terms of some kind of model, not necessarily of the mathematical kind. The whole point of the true story of the baby-sitting coop, which brings it down to a human scale, is that it's quite possible for economies to get into a snarl that can be solved by printing more money, or having the government spend more.”
I have diagnosed Krugman’s views not as a theory or model but a phobia here including the babysitter coop model. The authors of the original short paper on the failure of the babysitter coop clearly wrote the paper “for fun” and explicitly warned against trying to apply it in the real world. My research found that:
The babysitter model appears in a four-page comment where the co-authors place their tongues firmly in their cheeks. There have been no citations to the four-page paper since it was published in 1977, as indexed by the Institute for Scientific Information, the most comprehensive source of citations, which reviews over 7,000 sources for citations. You could say that the article was largely written and read "just for fun," and at the end of the article the authors are careful to issue a clear message of caution for the reader to not read too much into the paper, and an explicit cautionary statement to guard against the type of recommendations that Paul Krugman is so famous for making.
Shawn Ritenour also has a critique of Krugman’s use of the babysitter coop model here.





Latest Economy
- Low Inflation? The Price Of Ground Beef Has Risen 17 Percent Over The Past Year
- EFF, Internet Archive, and reddit Oppose New York's BitLicense Proposal
- Who's Afraid of the Workers' Revolution?
- Sports Stadiums: Temples to Crony Capitalism
- Obamacare Architect Says Society Would Be Better Off If People Only Lived To Age 75
- Elizabeth Warren Says US Has "No Future" If Free-Market Embraced
- Cost of Renouncing US Citizenship Goes From Free In 2010 to 450$, And Now It's Been Jacked to $2,350
- Colorado's Illegal Pot Market Thrives









No Comments Posted Add Comment


Add Comment
Name
Comment

* No HTML


Verification *
Please Enter the Verification Code Seen Below
 


PLEASE NOTE
Please see our About Page, our Disclaimer, and our Comments Policy.


FAIR USE NOTICE
This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

About Us - Disclaimer - Privacy Policy



Advanced Search
Username:

Password:

Remember Me
Forgot Password?
Register

Mission Creeps: Homeland Security Agents Confiscate Women's Panties For 'Copyright Infringement' - 10/23Chicago Cop Who Assaulted 89-Yr-Old For Requesting He Stop Cursing Gets 3 Years - 10/23Doctor Assaulted by Police at Dying Son's Birthday, Tasered so Many Times He Had a Heart Attack - 10/23The Compassion Of the State: Town Sells Mom's Home At Auction Over Unpaid $95 Tax Bill She Was Never Notified About - 10/23Call the Suicide Prevention Hotline -- Get Killed by a SWAT Team - 10/23Man Brutalized & Stopped Over 20 Times in 5 Weeks by Cops Mistaking Him for Murderer - 10/23Canadian PM Vows To Take Away Citizens' Rights In Response To Parliament Attacker - 10/24Either Praise the Police, or Shut Up - 10/22

Rialto, CA Police Made to Wear Cameras, Use of Force Drops by Over Two-ThirdsCop Who Karate Chopped NY Judge In Throat Gets Off Scot-FreeFlorida Cop Smashes Compliant Woman's Face Into Car -- "Maybe Now You Can Understand Simple Instructions"VIDEO: Lapel Cam Reveals A Day In The Life Of A U.S. Police Officer (Tasing, Beating, Breaking & Entering, Stomping On Heads... and Laughing About It)Caught On Tape: Officer Sucker Punches Inmate In Face, Files Report Claiming 'Self Defense'Insult Person On Twitter, Go To JailSWAT Team Brings TV Crew To Film Raid Against Threatening Internet Critic -- Raids Innocent Grandma InsteadCop Karate Chops NY Judge In The Throat
(more)

 
Top